A Strategic Framework for Enhancing Productivity and Competitiveness in Agri-Biotech Sector of Punjab

Abstract

Agri-Biotechnology is an emerging area with a lot of scope for research. The research in Agri-Biotech sector is mostly on cropping areas .The present study covers empirical research on selected Agri-Biotech firms of Punjab. The sample has been chosen from the state of Punjab covering Dairy Products, Food Processing and Chemical: Fertilizer /Pesticides/ Distillery. The objective of the study was to determine productivity trends in Agri-Biotech sector, to identify the factors affecting productivity and competitiveness and to design a strategic framework for enhancing productivity and competitiveness in Agri-Biotech sector. Secondary data was used for finding out labour productivity, capital productivity and total factor productivity. Results indicate that low capital productivity and total factor productivity and high labour productivity as well as high capital labour ratio. Inter industry difference shows chemical sector performing better than food and beverage sector. The findings of the study included the identification of the factors affecting productivity and competitiveness. On the basis of factor analysis the study identified key factors influencing productivity. These include: Internal and External Environment; Cost Efficiency; Production Planning and Control; Technological Advancement. The analysis was also done on the basis of size of the firm, viz. small, medium and large and also on the basis of nature of industry. The results of ANOVA highlight a significant difference on the basis of size viz. small, medium and large for factors influencing productivity. ANOVA results depict difference evident on the basis of nature of industry, viz. Dairy Products, Food Processing and Chemical: Fertilizer /Pesticides/ Distillery for factors influencing productivity. Next step was to identify the key factors influencing competitiveness using factor analysis. These include: Threat of new competition; Threat of substitute products or services; Bargaining power of suppliers; Intensity of competitive rivalry; Bargaining power of customers; Rivalry among existing firms. The study also tried to evaluate the findings on the basis of evident literature. The analysis was also done on the basis of size of the firm, viz. small, medium and large and also on the basis of nature of industry. The study uses ANOVA for highlighting the difference on the basis of size of the viii firm factors influencing competitiveness. The findings highlight a significant difference on the basis of size for factors influencing competitiveness. ANOVA was also used for highlighting the difference on the basis of nature of industry factors influencing competitiveness. The results depict difference evident on the basis of nature of industry, viz. Dairy Products, Food Processing and Chemical: Fertilizer /Pesticides/ Distillery for factors influencing competitiveness. Finally structural equation modeling was used to a strategic framework for enhancing productivity and competitiveness in Agri-Biotech sector of Punjab. The dependent variables were market share and investment on research and development. The independent variables were competitive factors and productivity factors. The results indicate that from Research and Development (R&D) expenditure perspective productivity factors are important, while from the market share perspective competitive factors are highly important. The study also highlights low level of IPRs in the state especially patents. Thus there is a need to focus on these perspectives to enhance productivity and competitiveness in Agri- Biotech sector. The findings of this study have significant policy implications for the Agri-Biotech sector of Punjab. The Agri-Biotech sector of Punjab is using higher inputs, but still the performance in terms of productivity is low and needs to be improved. This sector is using more of capital input, as capital labour ratio is higher.